Pidilite board approves Rs500 crore buyback offer
New Delhi: Adhesives and industrial chemicals manufacturer Pidilite Industries on Tuesday said its board has approved a share buyback proposal of up to Rs500 crore.
“The Board of Directors of the company...approved buyback proposal for purchase by the company of its own fully paid equity shares of Rs 1 each not exceeding 50,00,000 equity shares at a price of Rs 1,000 per equity share for an aggregate amount not exceeding of Rs 500 crore,” Pidilite Industries said in a BSE filing.
50,00,000 equity shares constitutes 0.975% of the total paid-up equity capital of the company. The buyback price of Rs1,000 per share is nearly 8% higher than Tuesday’s closing of Rs926.10 apiece. The buyback will be subject to approval of the shareholders by way of a special resolution through postal ballot and all other applicable statutory approvals, Pidilite added.
The public announcement setting out the process, timelines and other statutory details will be released in due course in accordance with the buyback regulations. Pidilite’s board has formed a buyback committee and has delegated powers to the committee in connection with the buyback.
At present, Pidilite’s promoters hold 69.59% stake in the company. Shares of Pidilite Industries settled 2.02% lower at Rs926.10 on BSE.